What happens in China ..., Republican pickups & E.P. Thompson v. Caspar Weinberger
Great links, reading and Images from Chartbook Newsletter by Adam Tooze
Collin Sekajugo, The Generator (Detail), 2017. Fabric, barkcloth, photo print material embroidery on canvas
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What Happens in China Does Not Stay in China
Fascinating paper this by William L. Barcelona, Danilo Cascaldi-Garcia, Jasper J. Hoek, Eva Van Leemput at Federal Reserve
“… prior to the GFC, China’s credit measures represented a small share of global GDP. However, with China’s rise in the global economy, the quantitative importance of China’s credit policies has risen as well. Indeed, China’s last three stimulus episodes each accounted for around 1.5% of global GDP. … Altogether, if we compare the results from our benchmark model to the literature that focuses on the role of U.S. monetary policy as an important driver of the global financial cycle, it appears that the channels of financial spillovers from China’s credit policies are different from those stemming from the United States. As documented in Miranda-Agrippino and Rey (2020) financial spillovers from U.S. monetary policy transmit through mainly through global financial actors given that the 25 United States is highly interconnected in the global financial system. Expansionary U.S. monetary policy shocks are followed by a significant increase in leveraging of global financial intermediaries, a decline in aggregate risk aversion, an expansion in global asset prices and global credit, a narrowing of corporate bond spreads, and a rise in gross capital flows. In contrast to the United States, China does not have a big presence in global financial markets. Yet, our results suggest that spillovers from China reverberate through the global financial system predominantly through sentiment effects. Expansionary credit policies in China lead to an increase in Chinese consumption, which raises global growth. Higher global growth prospects lead to an increase in global risk sentiment and an expansion in global asset prices and global credit.”
The European price level
What cars tell you Americans and their politics
Republicans make up 55% of the full-size utility (SUV) market and 53% of the heavy duty pickup market (table below); Democrats make up 38% and 36% of the small and mid-size APT (hybrids, EVs) market, respectively. The single greatest Republican-Democrat disparity is the heavy duty pickup truck segment, where Republicans buy eight pickups to one for each Democratic buyer.
Meanwhile, China’s lead in the EV transition keeps growing.
For subscribers only
Techno-politique de la puissance, des alliances et des interdépendances
This by Asma Mhalla at Le Grand Continent is fascinating. And Le Grant Continent is an essential read.
Erdogan-Sisi handshake and the Muslim Brotherhood
The new substack of Turkish journalist and reasearcher Ezgi Basaran is one to follow.
Erdogan who has repeatedly referred to Sisi as a murderer and a putschist… Sisi who has repeatedly accused Erdogan of attempting to destabilise his country by supporting a terrorist organization that is the Muslim Brotherhood (MB). They shook hands. Erdogan now claims that he intends to meet with al-Sisi as soon as the foreign ministers reach agreement on specific issues
Two or three things I know about her
E.P. Thompson debated Caspar Weinberger in 1984
The great British Marxist historian debated Reagan’s Secretary of Defense! … ok you have got me right there.
This is from Euromissiles The Nuclear Weapons That Nearly Destroyed NATO BY SUSAN COLBOURN Cornell University Press. Adding this to my xmas list.
And yes there is video of the clash!
Wu Guanzhong (29 August 1919 – 25 June 2010)
Wu Guanzhong was a contemporary Chinese painter widely recognized as a founder of modern Chinese painting.